Lotte's Struggle Caught in the 'e-Commerce Swamp'

Difficulty Finding Leader for 'Lotte ON'
Unclear Synergy in Ebine Acquisition

[Asia Economy Reporter Jo In-kyung] As the distribution industry undergoes a major transformation centered on e-commerce, including Coupang's IPO and the equity swap between Emart and Naver, Lotte's concerns are deepening. The integrated e-commerce platform 'Lotte ON,' which has received an investment of 3 trillion won, is adrift without a leader, and although Lotte has participated in the bidding for eBay Korea's acquisition, evaluations continue that internal momentum is lacking.

Difficulty Finding Lotte ON CEO

On the 19th, it was reported that Lotte Group is struggling to appoint a new CEO for Lotte ON. After deciding to bring in an external e-commerce expert, they have been searching for a suitable candidate through various methods but have not been able to find a successor easily.

A senior official in the distribution industry said, "Since the new CEO is expected to act as a savior, the industry reaction is that they must perform well just to break even," adding, "The new CEO will have to oversee all Lotte Shopping affiliates, including department stores and large marts, but given Lotte Group's past atmosphere, which was hierarchical and conservative, it will be difficult to lead change and innovation."

Internal Debate Over eBay Acquisition

Although Lotte has participated in the acquisition of eBay Korea, the internal atmosphere remains skeptical. Specifically, there seems to be insufficient consideration of online synergies. Even within the group, the stance remains at a fundamental level, stating, "We are reviewing all possible methods to create synergy in the online business."

Because of this, industry observers believe that rather than actively considering a final bid for eBay Korea, Lotte likely participated in the preliminary bidding to examine eBay's open market operational know-how during the due diligence period.

"No Problem with Acquisition Funds"

Some have raised concerns about the burden of acquisition funds, which could reach 4 to 5 trillion won, but a Lotte official stated, "If there is 100% confidence that acquiring eBay and combining it with Lotte ON will produce visible results, there is no reason to hesitate to invest trillions of won."

Experts advise that for Lotte to overcome this crisis, bold investment is necessary not in hardware restructuring but in online innovation and securing platform competitiveness. Analyst Park Eun-kyung of Samsung Securities said, "Cost reduction through store restructuring alone is insufficient without increasing market share in the distribution industry," adding, "Even with initial cost burdens, large-scale online investment is unavoidable."

This content was produced with the assistance of AI translation services.